Merx Aviation in market with an inaugural ABS

Eleanor Steed
By Eleanor Steed April 26, 2018 16:41

Merx Aviation in market with an inaugural ABS

Earlier this week, Merx Aviation launched its inaugural aviation asset backed securitisation (ABS) – $506.5 million in three tranches of notes secured on a portfolio of 25 aircraft, with an average age of nine years and a weighted average remaining lease term of 4.5 years.  The proceeds from the notes will also be used to refinance the AABS Limited Asset Backed Secured Term Loan (AABS) aircraft ABS transaction, which closed in January 2013. Of the 25 aircraft in this portfolio, 19 were also securitized in the AABS portfolio. Merx owned the equity in the AABS transactions and is now taking over the servicing of those 19 aircraft.

The transaction comprises $415 million A notes, rated A, with an initial loan-to-value (LTV) of 68%; $55 million B notes, rated BBB with a 77%initial LTV, and $36.5 million C notes rated BB with an LTV or 83%.

The aircraft portfolio – which consists of 14 737-800s, seven A320-200s, three A319-100 and one 737-700 – has an initial value of $610.5 million and an aggregate maintenance-adjusted current market value of $614.8 million.

Goldman Sachs is the sole structuring agent, global coordinator and lead bookrunner. Credit Agricole-CIB is the liquidity facility provider. Deutsche Bank is the security trustee, the operating bank and trustee. Maples is the managing agent.

Eleanor Steed
By Eleanor Steed April 26, 2018 16:41